Voluntary retirement compensation and chargeability to tax if payment is stretched over a period of years

SUMMARY OF CASE LAW

Benefit in lieu of salary payable to an employee opting for voluntary retirement is exempted from being charged to tax to the extent of Rs. 5 lakhs by reason of section 10(10C); even if the payment is stretched over a period of years, the same would not become chargeable to tax in any subsequent assessment year.

RELEVANT PARAGRAPH

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